PROPERTY BULLETIN PPK 344/06/2011 (023984)

“Working Together With You” 35 years

PROPERTY BULLETIN 8, Issue 2 - H2 2010 Vol

C H Williams Talhar Wong & Yeo Sdn Bhd (24706-T)

SARAWAK SARAWAK PROPERTY MARKET REVIEW 2010 & OUTLOOK 2011 Sarawak 2010 in Review This Issue The re-implementation of the RPGT had little impact on the property market, curbing only short term speculative investments. 1 - Sarawak Property Market Review Selling prices especially of residential properties which had taken a hike in the past 2 years 2010 and Outlook 2011 continued to increase, albeit at a lower rate. In contrast to property prices which have appreciated as high as 20% for some prime areas, rental yields have remained largely stagnant 4 - Sarawak Market Outlook and are still not attractive due to low demand. 5 - Highlights from Federal Budget / As in the previous year, there has been continued interest in high end properties which offer State Budget larger spaces and improved designs and functionality. Although these developments are small and insignificant in terms of numbers, they have set record high prices of more than 6 - Auction / Tender RM2 million for units in Kuching with average land areas of 7,000 square feet and built up areas of 3,500 square feet and recorded brisk sales. 7 - Sale / Rent The secondary market for houses is also now more active as these houses are more affordable and located in more established locations. The short leases remaining on the real estate 8 - Economy properties in Sarawak are no longer an issue for contention as the renewal premiums, announced in May 2010 by the state government, were reasonably priced. 9 - Property More shopping complexes are being built with some big scale ones like City One, Boulevard Extension and ST3 in Kuching; Times Square in Bintulu; Permy Mall and MYY Mall in 10 - Commodities / Performance of Miri; and Star Mega Mall in . Except for Bintulu, there are concerns whether these will Auctions / Tenders create an overhang in this segment.

Kuching Central Kuching City Mall, Jalan Datuk Stephen Yong

City One, Jalan Song ST 3 @ Jalan Simpang Tiga

1 KUCHING

2010 in Review Driven by stronger business and consumer sentiments carried over from 4Q 2009, the launches for 2010 for Kuching and Samarahan have picked up, recording about 10% to 15% increase from the previous year. About 80% of these were launched in the 1st half of 2010, probably as a correction of the lull in the last 2 years. The 2nd half of 2010 was quieter, probably due to diverse investment interest in the recovering economy, as seen in a more steady and buoyant stock market in the 2 quarters of 2010, the increasing price of commodities like gold etc. Residential Sector As most of the Kuching City residential areas, located in South East Kuching are developed, there has been a natural expansion into the adjacent Samarahan areas further east and south, forming the greater Kuching residential market. More than 50% of the total launches for 2010 are found in the Samarahan District where land is more abundant and cost is lower. Major residential launches in 2010 included Taman Sentoria by Jung Kuo SB and Central Villa/City by M/s Mdkwangtai at Kota Samarahan, Green Acres and continuing phases in Taman Genesis by M/s Lee Onn at Batu Kawa-Matang area; and Lot 1 Block 8 @ Penrissen by Regal Advantage SB and Taman Lan Hua along Jalan Kuching-Serian. Most of these developers are relatively new, concentrating on land banks in secondary areas, building affordable houses.

PROPERTY BULLETIN 8, Issue 2 - H2 2010 Vol

For the most parts of Kuching and Samarahan, the majority of the new developments are small, not exceeding 100 units, and are located in the suburbs, particularly along the Kuching-Samarahan expressway.

SARAWAK Residential developments in Kuching have remained quite steady in terms of output and pricing and there is no large overhang due to strict planning approval guidelines and control by the State Planning Authority. Small, high-end niche residential developments in prime areas continue to enjoy strong interest and sales. Generally, the prices of residential units in Kuching have shown considerable price increases of more than 10% and even up to 20% for some prime areas. Property prices for niche developments have reached an all-time high of over RM1 million for semi-detached houses and more than RM2 million for detached houses with standard lots. Commercial Sector There were a few major commercial developments launched in 2010, namely, ST3 at Jalan Tun Jugah, City One at Jalan Song, Tabuan Tranquility at Stutong and Summer Mall in Kota Samarahan. Except for City One which is sited Highest prices transacted in 2010 next to an existing thriving commercial area, the Semi- Link latter 2 are in fairly new suburban locations. Retail Sector Condos Shophouse Factories Bungalows detached Houses The increasing number of retail complexes built Location Jalan Song- Jalan Kuching- Jalan Jalan Jalan Jalan in the last few years would be a challenge to the Tun Jugah Airport Samarahan Setia Raja Stampin Stutong Stutong retail sector. Even as new and more modern retail Expressway Tengah complexes are coming into the market, some older Floor Area (sf) 674 3315 8043.88 2987 3500 3518 1706 retail complexes in Kuching are not faring well with Price RM psf 2100 142.38 200.05 189.15 628.57 341.10 274.33 occupancy rates dropping significantly, as they Location NA Bamfylde Jalan Song Jalan NA NA Jalan Song struggle to maintain their market share whilst the Penrissen new complexes face delays in filling up their units. Floor Area (sf) NA 1000 sf 4660 sf 2000sf NA NA 1700 Occupancies in some city complexes have even Rental psf/mth NA 2.5 1.6 1.15 NA NA 0.5 dropped below 50%. Average Yield NA 7% 6.50% 5.50% NA NA 3.50% SIBU 2010 in Review There has not been much movement in the property market for Sibu as the majority of on-going property development projects in 2010 are a continuation of the projects launched in previous years. Sibu is still reeling from the recent property economic crisis coupled with high inflation and increasing building costs. The market for double-storey semi-detached dwelling houses in Sibu is hard-hit due to their limited market demand and the high selling prices. The majority of developers now prefer to concentrate on more affordable residential units such as single and double-storey medium cost houses although these have also increased in price. Residential Sector One of the major on-going residential projects expected to be completed by end of 2010 or early earlier 2011 is Sungai Merah Heights Park. The developer, Nice Realty Sdn Bhd has now embarked on another residential project to develop affordable housing of single-storey low-cost to low-medium cost terraced units in Jalan Teku/Jalan Trusan Rantau Panjang area. This residential project with 467 units, and named Taman Teku, was launched in the 3Q 2010 and will be built over 3 phases. Other major on-going residential developments nearing completion are Desa Satra and Taman Bougenvilla located along Jalan Ulu Oya and Yemas Developemt Sdn Bhd’s residential project located along Jalan Ling Kai Cheng. Prices in the housing sector continue to rise slightly, with 2-storey intermediate terraced house and 2-storey semi-detached house in prime locations commanding more than RM350,000 and RM500,000 per unit, respectively. Purchasers have become more aware and selective of housing locations as most of the low lying areas in Sibu are prone to flooding and soil settlement. Commercial Sector A summary of some major on-going commercial developments in and around Sibu are as follows:

2 Units Launched & Project / Developer Location Type Units Under Construction Nice Realty S/B Jalan Ulu 2-storey Shophouse 55 units plus 1 mall Sungai Merah. Nice Realty S/B Jalan Ding Lik Kwong 2-storey Shophouse 15 units Loh Ing Kiong Jalan Tun Abang 3-storey Shophouse 23 units Construction S/B Haji Openg NA Sungai Merah Bazaar 3-storey Shophouse 34 units

Compared to 2009, the Sibu commercial sector showed signs of improvement and prices for shophouses have stabilized. Newly Renovated Kingwood 2011 will witness the completion of two large shopping complexes in Sibu, namely Star Mega Mall, a 2-storey commercial building situated along Jalan Tunku Abdul Rahman, 6 km from Sibu town Sibu Taman Teku centre, offering over 240,000 sf of retail space; and Giant, situated Phase 1 along Jalan Ling Kai Cheng. This will be a fresh change to the retail scene in Sibu. Sibu Star Mega Mall Developed and managed by Daesim Management Sdn Bhd., the Star Mega Mall will be occupied by Daesco hypermarket as anchor tenant and is expected to open for business in the 2nd half of 2011. On the adjoining lot to Star Mega Mall, there are 48 units of 3-storey shophouses of which 24 units have had been completed in Sibu Ulu Sg.Merah 2010. The rest are still under construction and nearing completion. Square Sibu Giant Shopping Complex

BINTULU

The housing sector in Bintulu which experienced more housing construction activity in 2010 due to a stronger demand will continue to be active in 2011. There will also be increased construction of low cost housing by developers judging by the increased budget allocated by the government for low cost housing to achieve zero squatters. Kemena Hotel @ Assyakirin Tune Hotel @ Assyakirin Bintulu is also set to experience a boost to its retail sector with the Commercial Phase I, off Jalan Commercial Phase II, off Jalan building of a few new shopping malls expected to be completed in Sultan Iskandar, Bintulu Sultan Iskandar, Bintulu 2012 or 2013, such as Times Square Mall at Jalan Tun Hussein Onn and Commerce Square at Jalan Ahmad Zaidi. Property prices will continue to hold or even increase due to rising material costs as evidenced by the upward revision of selling prices of the existing launches by property developers. The recent housing schemes announced by the government for 2011 will also go a long way in assisting the young house-buying population in Bintulu. Columbia Asia Hospital @ Jalan Jin Hold Apartment @ Jalan Tanjong Kidurong, Bintulu Tanjong Batu, Bintulu

Bintulu Waterfront @ Eastern Times Square Mall @ Jalan Tun Bintulu Medical Centre @ Parkcity Commerce Square @ Bank of the Batang Kemena, off Hussein Onn/ Bintulu Miri Road, Medan Sentral Commercial Jalan Tun Ahmad Zaidi, Bintulu Jalan Tanjong Batu, Bintulu Bintulu Centre, off Jalan Sultan / Jalan Tanjong Batu Iskandar,Bintulu Highest prices transacted in 2010 Retail Sector Condos Shopoffices Factories Bungalows Semi-detached Link Houses Location Parkcity Mall Btu Beach Resort Jabai Area, Btu Condominium Btu Township Jalan Sibiew Nil Jln Tg Batu Golden Villa Floor Area 734.20 sf 1883.68 sf 8636.96 sf 2,583.36 sf Nil 3262.54 1947.62 Price psf RM1,450.55 psf RM265.43 psf RM208.93 psf RM259.35 psf Nil RM245.20 psf RM161.74 psf (RM800,000) (RM315,000) Location Parkcity Mall Btu Btu Beach Resort Parkcity Jalan Sibiew Jalan Tg Batu Tmn Emas Happy Garden Condominium Floor Area 734.20 sf 1883.68 sf 3955.73 sf 2,583.36 sf 3813.55 sf 1990 sf 1685 sf Rental psf/mth RM10.00 - RM1.60-RM1.80 RM0.92 psf RM1.50 psf RM0.90 psf 12.00 psf psf RM1.10-1.30 psf RM1.00 psf (RM3,500 RM2,500-3,000 (RM1,500) furnished) (furnished)

3 MIRI Residential Sector With the recent announcement of the higher housing loan margins and lower stamp duties for 1st time buyers in the 2011 Budget, it is anticipated that there will be more launches for houses within the RM200,000 price range as well as higher sales for on-going medium cost projects especially in the areas of Taman Tunku, BB Permyjaya and Desa Senadin.

In view of the positive economic outlook for 2011, demand for properties will continue to rise in Miri. However, it is anticipated that there will be lesser large-scale housing projects compared to 2010, although higher end apartments and condominium projects will continue to be in the picture. Construction of the Bay Resort Condominium and Grace Heights apartments, both having sea views, are in full swing and are due to be completed in 2011. Commercial Sector Implerial Palace Hotel The retail sector in Miri will experience another jolt with the recent completion of the Merdeka Mall located along Miri-Bintulu road towards the Southern part of Miri and the Bintang Megamall extension. The construction of several new malls are also underway, namely,

PROPERTY BULLETIN 8, Issue 2 - H2 2010 Vol Permy Mall at Bandar Baru Permyjaya and MYY Mall at Lutong which are due to be completed next year. The Marina Park project, with its unique and classic waterfront SARAWAK environment for business and living, is progressing in terms of construction stage and sales. In particular, the commercial units are Bay Resort Condominium sold out and more sales are expected from this mixed development Permy Mall (under construction) project in the coming year. Industrial Sector The Eastwood Industrial Estate and Senadin Park Enterprise are currently the only on-going industrial projects in Miri. It is anticipated that the industrial sector will continue to remain stable for next year. Vista Perdana Bintang Megamall Highest prices transacted in 2010 Office Sector Retail Sector Condos Shopoffices Factories Eastwood Bungalows Semi-detached Link Houses Location BUA Merdeka Mall Brighton BUA Valley Ind. Location off Miri-Bintulu Rd Luak Luak Floor Area 72,334 527 1,572 1,355 6,780 (sq.ft.) Land Size sq. ft. 15,231 6,113 2,492 Price per 49 949 305 701 81 Floor Area sq.ft. 5,081 1,938 1,393 sq. ft. Sale Price 850,000 560,000 285,000 Location NA NA Brighton Condo NA Piasau Light Ind. Est Floor Area NA NA 146 NA 308 Location BUA BUA Kuala-Baram (sq.ft.) Land Size sq. ft. 10,000 3,627 1,884 Monthly NA NA 3,500 – 4,000 NA 4,200.00 Rental per Floor Area sq.ft. NA 2,852 1,615 sq. ft. Monthly Rental 6,000 4,500 1,800

SARAWAK MARKET OUTLOOK The property sector continues to improve in tandem with the recovering economy. As GDP growth is expected to reach 7% for 2010, the property sector is also expected to gain some momentum. The number of property sales is expected to be aided slightly in 2011 by the 1st House Scheme introduced in the recent Budget whereby house buyers with household income of less than RM3,000 can apply for 100% loans for properties priced below RM220,000 and the 50% reduction of stamp duty on loan and transfer instruments for houses below RM350,000. However, this Scheme has a significant impact on private conventional housing within Kuching proper as most new housing units including terraced units are priced above RM250,000. Likewise, the 50% exemption on stamp duty may not benefit home buyers greatly since many developers are already offering to pay for legal and stamp duty costs. The property market for 2011 will pick up only slightly from 2010 and is likely to remain similar to 2010. Demand for lower to lower medium range residential properties still appear to be low, due to their less desirable locales, design and size. It is felt that overall property prices which have been on the steady rise since 2009 will continue to increase slightly due to increasing costs of construction materials, land and labour but will remain competitive next year. The most saleable types of residential properties are still terraced followed by semi-detached units whilst 3-storey shophouses are preferred to their 4-storey counterparts. The design layout and features of new houses in the Sarawak market, especially in the capital of Kuching are also now becoming more savvy in meeting the modern customers’ needs and tastes. Commercial properties, mainly in the form of shophouses, still enjoy strong demand particularly those within or close to established business and residential centers. Recent launches indicate good sales rates although this may change with more upcoming commercial developments slated for launch in 2011. The fear of withdrawal of cheap credit, further increases in interest rates by end of 2011 and further increase in raw materials costs may spur some degree of house buying in the 1Q 2011. There seemed to be a bullish sentiment prevailing in the last quarter of 2010 but how this will translate to the property market remains to be seen, particularly since many investors appear to be more focused on the equities market at the moment. Obvious changes, if any, will only be felt and seen in 2012 and 2013 when the 10th MP and SCORE projects are fully underway and when the spin-off effects on demand as a result of increasing labour force and per capita income in the State, are more evident.

4 FEDERAL BUDGET • Development of world’s first integrated eco-nature resort at a cost of RM3 billion by Nexus Karambunai in to Highlights from Federal Budget announced on commence next year. 15/10/2011 : • RM212 billion is proposed for the 2011 Budget which is 2.8 Sarawak percent higher than the allocation for 2010. • Development of large-scale integrated Aquaculture Zones in Pitas, Sungai Telaga and Sungai Padas in Sabah as well as • Of this, RM162.8 billion is for Operating Expenditure and Batang Ai and Tanjung Manis in Sarawak with an allocation RM49.2 billion for Development Expenditure. of RM252 million. • Under the Operating Expenditure, RM45.6 billion is allocated • Construction and repair of 12,000 houses nationwide for Emoluments, RM28.2 billion for Supplies and Services, particularly in Sabah and Sarawak with an allocation of RM86.4 billion is allocated to Fixed Charges and Grants. RM300 million. • RM1.4 billion for the Purchase of Assets while RM1.2 billion • Build and upgrade rural roads in Sabah and Sarawak with an for Other Expenditures. allocation of RM2.1bil and RM696mil in Peninsular • As for Development Expenditure, RM28.3 billion is allocated • Corridor and regional development will be accelerated. The to the economic sector for infrastructure, industrial, Government allocates RM850mil for infrastructure support agricultural and rural development. • For Iskandar Malaysia, a sum of RM339mil is allocated. • RM15.5 billion allocated to the social sector, including education and training, health, welfare, housing and • The Northern Corridor Economic Region is allocated community development. RM133mil. • RM4.4 billion for development of the Security Sector, RM955 • East Coast Economic Region is allocated RM178mil for million for General Administration and RM2 billion projects. Contingencies. • For Sarawak Corridor of Renewable Energy, RM93mil is • Federal Government revenue collection is estimated to increase allocated for facilities. 2.3 percent to RM165.8 billion in 2011 compared with RM162.1 billion in 2010. The Federal Government deficit for 2011 is expected to further decline to 5.4 percent of GDP, compared with 5.6 percent in 2010. STATE BUDGET Projected growth for different sectors, Sarawak Effects of Budget 2011 on : 2010 2011 Property Market %% National GDP growth : • A mixed development project including affordable houses to BNM 7.0 5.0-6.0 be developed at a cost of RM10 billion in Sungai Buloh and MIER 6.5 5.2 is expected to be completed by 2025. World Bank 7.4 4.8 State GDP Growth 5.4 5.0 • Another landmark project “Warisan Merdeka” which includes State Inflation <2% <2% a 100-storey tower, the tallest in Malaysia, at a cost of RM5 State CPI Growth Sector : billion to be completed by 2015. Mining & Quarrying 3.2 3.0 Agriculture & Livestock 5.2 4.3 • RM85 million to provide infrastructure facilities to facilitate Construction 6.5 5.0 construction of hotels and resorts in remote areas with the Manufacturing 4.5 4.5 potential to attract tourists. Service 7.2 6.4 Public Investment 18.9 0.4 • RM50 million to construct several shaded walkways in the Private Investment 3.9 NA Public Consumption 6.5 2.9 KLCC-Bukit Bintang vicinity. Private Consumption 3.7 2.9 • Stamp duty exemption of 50 percent be given on loan Source : Supply (2011) Bill , 2011 State Budget, DUN Sitting, 1/11/2010 agreement instruments to finance first-time purchase of houses. First-time house buyers will be given stamp duty exemption of 50% on instruments of transfer on a house price Total Development Expenditure Budget * 2011 not exceeding RM350,000. RM million % • Raising the amount of loan from RM10,000 to RM20,000 Development Items for additional works on low-cost houses for Support Group Commerce and Industry 1271 47.0% Two. Transport & Communication 249 9.2% • Raising the maximum loan eligibility to RM450,000 General Administration 316 11.7% compared with RM360,000 currently, effective January 1, Agriculture, Land & Rural Devt 213 7.9% 2011. Introduction of “Skim Rumah Pertamaku” which will Utility Devt 447 16.5% provide a guarantee on down payment of 10 percent for houses Social & Community Devt 207 7.7% below RM220,000 for first-time house buyers. Total Development Budget 2,703 Source : From various sources on the 2008 Sarawak State Budget as tabled at the DUN Sitting, 19/11/2007 • To assist estate workers to own low-cost houses through a * RM4 billion from federal government scheme managed by BSN.

5 AUCTION / TENDER

• DH2SD • DH1CT • DH2T • Lot 3460Block 207 K.N. L.D. (M.Z.L) • Lot 4804 Section 65 Kuching Town • Lot 776 Block 217 K.N.L.D. (M.Z.L) • Lorong Kapor 11A, Taman Wee and L.D. (M.Z.L.) • RPR Batu Kawa, Lorong 10, off Wee, off Jalan Kapor, Kuching • Lorong Matang Jaya 6A5, Taman Jalan Batu Kawa, Kuching • RP - RM 97,200.00 Matang Jaya, Kuching • RP - RM 64,800.00 • RP - RM 95,175.00 • 315.9 sm • 84.6 sm KUCHING st • 243.9 sm • Tender – Close 21 February 2011 • Tender – Close 21st February 2011 • Auction - 8th March 2011 (Tues) at (Mon) at 4 pm (Mon) at 4 pm 10:00 am • Auction Room, High Court, Kuching • Auction Room, High Court, Kuching • Auction Room, High Court Kuching

• DH1T • DH1CT • DH1T • Lot 1472 Block 218 K.N. L.D. • Lot 1556 Block 3 Simanggang • Lot 2763 Block 8 Matang L.D. (M.Z.L) T. D. (M.Z.L) • Lorong 2F Taman Allamanda Indah, • Lorong 2C1, Everbright Estate, • Sabu, Bandar Sri Aman Jalan Batu Kawa, Kuching off Jalan Matang-Batu Kawa, • 314.4 sm Kuching • RP - RM 73,483.00 • RP - RM 117,000.00 • 155.0 sm • RP - RM 67,230.00 th • 130.1 sm • Tender – Close 28th February 2011 • Tender – Close 25 February 2011 • Tender – Close 28th February 2011 (Mon) at 4 pm (Fri) at 4 pm • Auction Room, High Court, Kuching (Mon) at 4 pm • Auction Room, High Court, Kuching • Auction Room, High Court, Kuching

• DH1T • DH1SD • DH2SD • Lot 2748 Block 1 Samarahan L.D. • Lot 646 Siburan T. D. (M.Z.L) • Lot 5385 Block 207 K.N.L.D. (M.Z.L) (M.Z.L) • Siburan Village, 17th Mile Kuching- • Taman Victoria, off Jalan Batu- • Lorong Desa Ilmu 12B3, off Jalan Serian Road, Kuching Kawa, Kuching Dtk. Mohd. Musa, Samarahan • RP - RM 259,200.00 • RM 315,000.00 • RP - RM 98,415.00 • 1983.0 sm • 487.1 sq. metres, more or les • 152.9 sm • Tender – Close 7th March 2011 • Tender – Close 7th March 2011 • Tender – Close 28th February (Mon) at 4 pm (Mon) at 4 pm 2011 (Mon) at 4 pm • Auction Room, High Court, Kuching • Auction Room, High Court, Kuching • Auction Room, High Court, Kuching

• DH1T • Lot 7019 Section 65 K.T. L.D. (M.Z.L) • Lorong Matang Jaya 1A, Matang • Lot 2605 Block 3 Sibu Town Jaya Housing Estate, Jalan Matang, SIBU District Kuching • 300.0 m2 • RM 165,000.00 • RP – RM204,120.00 • 197.0 sq. metres, more or less • Auction – 4-3-2011 10:00AM • Tender – Close 15st March • High Court II, Sibu 2011 (Tues) at 4 pm • Auction Room, High Court, Kuching

• DH2T • DH2T • One (1) unit of Intermediate Flat • No.856 C, YTD Garden, • No.144, Taman Yan Min, Jalan Tun Jalan Tun Hussein Onn, Bintulu • Unit 4, Storey 3, Block B at Pine Hussein Onn, Bintulu Tatau Flat, Tatau Bintulu • RP - RM153,000.00 • RP - RM135,000.00 • RP - RM86,000.00 • 183.80 sm • 197.60 sm • 52.30 sm

BINTULU • Tender – Close 23.02.2011 • Auction - 23.12.2010 • Tender – Close 09.12.2010 (Wednesday, 3:30 p.m) (Thursday, 10.00 a.m) (Thursday, 3:30 p.m) • Auction Room • Auction Room • C H Williams, Talhar, Wong & Yeo, Kompleks Mahkamah, Bintulu Kompleks Mahkamah, Bintulu Bintulu

• DH2T • DH2T • Lot 3202, RPR Kidurong • Sublot No.6, Pine Desa, Jalan Phase 3, Bintulu Sungai Sibiyu, Bintulu • RM120,000.00 • RP - RM136,000.00 • 130.00 sm • 148.80 sm • Auction – Close 05.01.2011 • Tender – Close 06.01.2011 (Wednesday, 3:30 p.m) (Thursday, 3:30 p.m) • Auction Room, • C H Williams, Talhar, Wong & Yeo, Kompleks Mahkamah Bintulu Bintulu

• DH1T • DH1T • DH1CT • Lot 3512, Lorong Desa Senadin • No. 368, Lorong 2, Jalan Lawas, • Lot 8454, Mee Ler Park of Taman Taman Tunku, off Jalan Miri-Bintulu, MIRI 2C-10, Desa Senadin, off Jalan Jelita, off Jalan Miri-Bintulu, 98000 Lutong-Kuala Baram, 98000 Miri 98000 Miri Miri • 137.9 sm • 138.2 sm • 164.0 sm • RP - RM115,000.00 • RP - RM105,000.00 • RP - RM110,000 • Tender – Close 16-03-2011 @ • Tender – Close 09-03-2011 @ 3:30 • Tender – Close 16-02-2011 @ 4:00 3:30 pm pm st pm • Auction Room, 1st Floor, Kompleks • Auction Room, 1 Floor, Kompleks • Auction Room, 1st Floor, Kompleks Mahkamah Miri Mahkamah Miri Mahkamah Miri

BUYING SECOND-HAND PROPERTY

While buying new properties has always been the trend locally, the second-hand property market in Malaysia has its own niche of customers. Second-hand properties can range from residential to commercial units. There are various reasons why second-hand properties have their perks :

Fast Buys The waiting time for the completion of the purchasing process is usually shorter, compared to buying new properties. As soon as the seller agrees, the purchase can be completed almost instantly when payment and legal documents are ready and after making sure that there are no other liabilities outstanding on the property.

Negotiable prices While second-hand property have a lower investment value, its purchasing price is most of the time, negotiable. Negotiable prices would help buyers save on costs.

Clear Inspection You can view the current state of the said property, inspect every nook, cranny and wiring while making sure that this is the property that you want.

Easily available Second-hand properties are also as easily available as brand new ones.

6 SALE / RENT

• Double Storey Godown • 1 1/2 Corner Terraced House • Double Storey Detached House th • Abell Road • Beverly Gdn, 11 Mile • Cloud Estate, Green Road • Rent - RM1.00 p.s.f.-RM1.50 p.s.f. • SP - RM200,000 • SP - RM450,000 • Workshop : 5212 sq.ft.; Office : 3000 • Land Area - 7.7 pts • Land Area : 13 pts KUCHING sq.ft • Partially furnished • Term of Title : 31-12-2797

• Single Storey Detached • Double Storey Semi-Detached Warehouse • Single Storey Detached House House • Demak Laut, Phase 3 • Kpg Cemerlang, BDC • Siol Kandis, Petra Jaya • SP - RM2,300,000 • SP - RM400,000 • SP - RM340,000 • Land Area : 6070 sq.m. • Land Area - 11.56 pts • Land Area : 8.9 pts • BUA : 10,000 sq.ft. • Native Land Area

• Double Storey Semi Detached • Double Storey Intermediate Terraced • Double Storey Semi Detached House House House • Stapok • Tmn Millenium, 12th Mile • Taman Princess • SP - RM500,000 • SP - RM270,000 • SP - RM338,000 • Land Area : .8 pts • Land Area - 7.97 pts

• Double Storey Corner Terraced • Double Storey Intermediate • Double Storey Intermediate Terraced House Terraced House House • Taman San Chin, Batu Kawa • Siol Kanan, Petra Jaya • Tmn Riverview • SP - RM290,000 • SP - RM180,000 • SP - RM120,000 • Land Area - 9 pts • Native Area Land

• 2-storey semi-detached house SIBU • Double Storey Intermediate • 2-storey semi-detached house • No. 3B, Lorong Merdeka 15, Sibu Terraced House • No. 17B, Lorong Merdeka 13, Sibu • SP - RM250,000 (with air- • Tmn Victory of Semeba • SP - RM280,000 conditioner) • SP - RM290,000 • Land Area - 311.0 sm • Land Area - 434.5 sm • ± 28 years • ± 22 years • partly furnished

• 2-storey intermediate terraced • 2-storey detached house • 2-storey detached house house • No. 2, Lorong Lanang Barat 20C, • No. 9, Lorong Sukun 3, 96000 Sibu • No. 5E, Lorong Lada 7, 96000 Sibu Sibu • SP - RM350,000 • SP - RM220,000 • SP - RM680,000.00 • Land Area - 481.3 sm • Land Area - 174.1 sm • Land Area - 452 sm • ± 23 years • ± 18 years • ± 7 years

• Double-storey intermediate • Double-storey semi detached • Double-storey corner house terraced house house • Taman Jason Ph.3 , Jalan Tun • Taman Jason Ph.3 , Jalan Tun • Taman Terus, Jalan Tun Hussein Hussein Onn, Bintulu Hussein Onn, Bintulu Onn, Bintulu • SP - RM365,000 • SP - RM290,000 • Rent - RM2,000 (partly furnished) BINTULU • 343.84 sm • 184.27 sm • 298.90 sm • Brand new • Brand new • Good Condition

• Double-storey semi detached • 3-storey intermediate terraced house shophouse • Taman Terus, Jalan Tun Hussein • Parkcity Commerce Square Phase Onn, Bintulu 5, Jalan Tun Ahmad Zaidi, Bintulu • Rent - RM3,500 (fully furnished) • Rent - RM4,000 (whole lot) • 405.00 sm • 122.50 sm • Good Condition • Good Condition

• D/S Detached

MIRI • D/S Detached • Taman Prom Jaya,Lutong • SS / IT • Jln Merikan, Lutong • 10 minutes drive to Curtin • Desa Senadin, Phase 5 • Good Condition University • Near Curtin University • SP : RM520,000.00 • SP : RM500,000.00 • SP : RM168,000.00 • 792.4 sq.metres • Quality furnished • 154 sq metres • 685.8 Sq metres

7 Increasing OPR and BLR for 2010

7.00%

6.00% OIL, GAS & ENERGY ELECTRICAL & ELECTRONICS TOURISM

5.00% Economic Transformation

ECONOMY 4.00% OPR Programme (ETP) 3.00% BLR WHOLESALE & RETAIL 2.00% A comprehensive effort that will transform Malaysia into a high-income nation by 2020 1.00% introduced in 2nd half of 2010 with the 0.00% private sector being the key drivers. 4/3/2010 13/5/2010 7/7/2010 GREATER

Bank Negara Malaysia has raised its Overnight Policy Rates 12 National Key Economic Areas (NKEAs) identified :

PROPERTY BULLETIN 8, Issue 2 - H2 2010 Vol

(OPR) 3 times in a year for 2010, i.e. on 4/3/2010, o Greater KL Development 13/5/2010 and 7/7/2010 respectively. The OPR is expected To be top 20 world class city to remain unchanged for the rest of 2010, but expected to be o Financial Services increased further to 3.25 by end of 2011. Deregulate for growth, lessen dependency on interest income

SARAWAK o Wholesale & Retail Consumer Sentiments Index: CSI4Q2010 Modernisation, globalization and revolutionisation by making more products duty free, retail hub at KLIA. o Tourism Affordable luxury, family fun, events & entertainment, business tourism and nature adventure o Oil, Gas & Energy To develop nuclear power, renewable energy, sustain oil production and grow downstream industry o Education o Electrical & Electronics o Healthcare o Palm Oil Accelerate replanting to improve average yield, enhance downstream expansion and sustainability YEAR END CHEER! o Agriculture • CSI inches higher to 117,2 points o Communications, Content & Infrastructure • Current incomes improve Ensure availability of strong IT infrastructure to facilitate further • Financial and job expectations encouraging efficiency gains • Inflationary fears step up o Business Services • Consumers all geared up to go shopping soon 131 Entry Point Projects (EPP) 131 Entry Point Projects (EPP) worth USD138b consisting mainly Business Conditions Index: BCI4Q2010 infrastructure and/or buildings construction as the fastest to spearhead the NKEAs as well as 60 Business Opportunities (BO). Expected results : • 3.3 million jobs expected to be created by 2020 • GNI per capita to be increased from USD7,000 to USD15,000 by 2020 @ 6% annual growth Participation : 1. 60% private non GLC sector 2. 32% from private GLC sector 3. 8% from Government AGRICULTURE

INDEX SLIPS BELOW THRESHOLD LEVEL

• Index loses 5.4 points QoQ, settles lower at 99.5 points HEALTHCARE • Sales significantly lower • Production and expected production marginally higher • Expected export sales lower • Capacity utilization stable BUSINESS SERVICES EDUCATION COMM. CONTENT & INFRASTRUCTURE

8 Summary of Volume and Value of Transactions as reported in the Property Market Report 2009 of NAPiC Volume of Transaction (Nos.) Volume of Transaction (RM ‘000) Sector 2006 % share 2007 % share 2008 % share 2009 % share 2006 % share 2007 % share 2008 % share 2009 % share Residential 6,278 43.91% 6,932 44.89% 10,074 44.38% 13,369 46.59% 749,620 36.37% 865,630 39.00% 1,313,730 38.93% 1,770,230 43.68% Commercial 1,476 10.32% 1,897 12.29% 2,366 10.42% 2,876 10.02% 342,490 16.62% 486,470 21.92% 553,130 16.39% 661,490 16.32% Industrial 213 1.49% 291 1.88% 661 2.91% 697 2.43% 65,930 3.20% 102,480 4.62% 248,540 7.36% 250,090 6.17% Agricultural 5,901 41.27% 6,089 39.43% 8,966 39.50% 10,518 36.66% 629,340 30.54% 629,850 28.38% 933,230 27.65% 906,800 22.38% Devt Lands 374 2.62% 232 630 1,229 4.28% 266,600 135,020 326,250 9.67% 461,990 11.40% Others 55 0.38% 0 0.00% 0 0.00% 5 0.02% 6,860 0.33% 0 0.00% 0 0.00% 2,050 0.05% Total 14,297 100.0% 15,441 98.5% 22,697 97.2% 28,694 100.0% 2,060,840 87.1% 2,219,450 93.9% 3,374,880 100.0% 4,052,650 100.0% Source : Compiled from the various Property Market Reports of Valuation & Property Services Department of the Ministry of Finance

PROPERTY

# Sarawak’s Volume and Value of Transaction stands at 8.5% and 5.0% respectively of the Malaysian total # Compared with 2008, the property transactions for Sarawak has increased by 26.4% and 20% for both volume and value # 81.2% of the volume transacted for Sarawak are landed properties; # 2-storey terrace forms the bulk of the supply at 21.5% followed by 1-storey terrace at 18.7% and 2-storey semi-detached at 12.2%

Sarawak – Units Launched, Started and Completed

10000

9000

8000

7000

6000

5000 2009 2010 4000

3000

2000

1000

0 Launched Started Completed

Source : WTWY Research 2010

GOODIES FOR 1ST TIME HOUSE BUYERS SUMMARY FROM THE HOUSING MINISTRY AT DUN MEETING ON 9/11/2010 First Home Scheme was being introduced by the Government in Budget 2011 as below to encourage home ownership The Ministry of Housing Sarawak opined that the decrease in State among Malaysians: and National GDP from 5.4% to 5% and 7% to 6% projected for • Specially cater for first-time house buyers with monthly 2011 respectively will not affect housing development. Under the household income below RM3,000. 10th Malaysia Plan, federal fund allocation has been applied for • 100% loan for houses priced below RM220,000. 19,545 units of affordable houses including 11,129 units of houses • 50% stamp duty exemptions on instruments of transfer to be owned, 6,5487 to be rented out and 1,868 for Rumah Mesra on houses below RM350,000. Rakyat. So far, RM100 million have been received to build 865 • 50% stamp duty exemptions on loan agreement houses in Kuching, Samarahan, Bintulu, Mukah, Song and Kanowit instruments on houses below RM350,000. which would be completed by 1st quarter 2011. According to To facilitate the 100% loan, Cagamas Bhd (national mortgage records, 20,600 units of housing have been developed in the last 5 corporation) will provide guarantee on the 10% down- years with 4,641 units for 2010 (up to October 2010), 7,053 units payment to eligible house buyers. for 2009 and 6,468 units for 2008.

Source : Winding Up Speech by Minister of Housing, 5th Session of DUN Sitting, 9/11/2010 NEW RULES TO COOL PROPERTY SPECULATION TUNE HOTEL Effective 3rd November 2010, BNM has implemented a new loan to value ratio of 70% for homeowners buying their 3rd A 101-room Tune Hotel will be opened in Bintulu by 2011, the residential property as it seeks to moderate property 2nd Tune Hotel in Sarawak. This will bring the number of Tune speculation. This, however, will not affect financing facilities Hotels in Malaysia to 9. for purchase of the 1st and 2nd houses. The measure aims to avert unhealthy speculative activities which could lead to a property bubble and support a stable and sustainable property market, and promote affordability of homes for the general public.

Source : Various national newspapers, 4/10/2010

9 Crude Oil and Crude Palm Oil - Average Monthly Prices Comparison (Aug 2007 - Dec 2010)

Crude Oil CPO (US$/barrel) (RM/tonne) 160 4000.00

140 3500.00

120 3000.00

100 2500.00

80 2000.00

COMMODITIES

60 1500.00 RM/tonne

US$/barrel

40 1000.00

20 500.00

0 0.00

PROPERTY BULLETIN 8, Issue 2 - H2 2010 Vol Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May-Jun- Jul- Aug-Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May-Jun- Jul- Aug-Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May-Jun- Jul- Aug- Sep- Oct- Nov- Dec-

07 07 07 07 07 08 08 08 08 08 08 08 08 08 08 08 08 09 09 09 09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10 10 10 10 10 10 Year

SARAWAK Performance of Auctions/Tenders (carried out by WTWY) 500 35% 450 30% 400 350 25%

enders 300 20% 250 200 15%

Success Rate (%)

No. of Auctions/T 150 10% 100 5% 50 0 0% 2003 2004 2005 2006 2007 2008 2009 2010 Year

Total No. of auctions and tenders Total successful auctions and tenders Success Rate (%)

New Appointment at WTWY On 1st October 2010, Ms Yip Phooi She is a registered Valuer (V-0690) and Leng was appointed as Director in registered Estate Agent (E-1955) and is charge of Kuching Branch Office. a graduate of the University of Malaya with a degree of Bachelor of Estate Ms Yip Phooi Leng joined the WTWY Management. She has devoted her expertise to the valuation, estate agency team as Branch Manager of Kuching and property management fields Office on 29th October 2007 and was particularly in carrying out all valuation promoted to Associate Director on 1st YIP PHOOI LENG exercises including acquisition cases in April 2010. Kuching. New Staff for 2010 Town Staff Name Date of Commencement Position Kuching Richard Wee Cheng Siong 01/03/2010 Real Estate Negotiator Kuching Liew Lee Lee 01/04/2010 Graduate Valuer Kuching Lim Tien Yang 16/12/2010 Graduate Valuer Miri Wong Tuk Ung 14/06/2010 Real Estate Negotiator Miri Joseph ak Lawrence 01/07/2010 Valuation Executive Sibu Lau Sie Yiing 01/12/2010 Administrative Assistant

10 Times Square Mall @ Jalan Tun Hussein Onn / Bintulu Miri Road by Chieng Chuang Construction Sdn Bhd

No. of Units : > 150 Nett Lettable Area : 37,454 sm Price : RM1,738 psf (Grd) RM1,350 psf (1st) RM1,138 psf (2nd) Unit Size : 269.85 to 952.61 sf

42 Units Shophouses @ Tabuan Desa Utara, Kuching TABUAN SQUARE by Blessed Realty

FRONT VIEW PERSPECTIVE

REAR VIEW PERSPECTIVE

Property Type: New 3-Storey Shophouse Area: Corner 29’ x 62’, Intermediate 23’ x 62’ Price: From RM730,000 onwards

Enquiries can be made at WTWY Real Estate Sdn Bhd (a subsidiary of CH Williams, Talhar, Wong & Yeo) at 082-246262 / 428436

11 48 LUXURY GATED & GUARDED TOWN VILLA @ JALAN KEMPAS, KUCHING LUSH RESIDENCES by Multiplex

Town House Frontview

Courtyard View Viewing is by appointment only. Sales enquiries and viewing appointments can be made at WTWY Real Estate Sdn Bhd (a subsidiary of CH Williams Talhar Wong & Yeo) at 082-246262 / 428436.

CH Williams Talhar Wong & Yeo Sdn Bhd (24706-T) Chartered Surveyors • Valuers • Estate Agents • Property Managers Real Estate Counselors • Development Consultants

WTWY Offices Kuching Sibu Visit Us On The Web No 9, 1st Floor, Jalan Song Thian Cheok No 11 & 12, 2nd Floor, Lorong Kampung Datu 3A www.wtwy.com PO Box 2236, 93744 Kuching, Sarawak, Malaysia PO Box 1467, 96008 Sibu, Sarawak, Malaysia Tel : 082-246 262 Fax : 082-416 909 Tel : 084-319 396 Fax : 084-320 415 E-mail : [email protected] E-mail: [email protected] years Miri Bintulu Lot 1139 Ground & 1st Floor 1st Floor, 35 BDA/Shahida Commercial Centre 35 Miri Waterfront Commercial Centre Lebuhraya Abang Galau PO Box 1121, 98008 Miri, Sarawak, Malaysia PO Box 363, 97008 Bintulu, Sarawak, Malaysia The information in this newsletter is subject Tel : 085-432 821 Fax : 085-411 786 Tel : 086-335 531 Fax: 086-335 964 to change and cannot be part of a contract. Every reasonable care has been taken in E-mail : [email protected] E-mail: [email protected] providing this information and WTWY cannot be held responsible for any inaccuracies. The information and photographs in this Associate Offices: newsletter cannot be copied or reproduced in any form without the prior written consent Kuala Lumpur • Petaling Jaya • Bahru • Ipoh • Alor Setar • Butterworth • Kota Bharu • Kuala Terengganu of WTWY. Batu Pahat • Kuantan • • Seremban • Kota Kinabalu • Sandakan • Tawau • Lahad Datu • Labuan • Brunei

Published by : CH Williams Talhar Wong & Yeo Sdn Bhd (24706-T) No 9 (1st Flr) Jalan Song Thian Cheok, 93744 Kuching Tel : 082-246262 Printed by : Wisma Printing Sdn Bhd (287428-U) Lot 1949, Section 66, KTLD, Lrg Tekad 1, Jln Tekad, PIE 93450 Kuching Tel : 082-338131 12